For the week ending Friday, June 6, 2008, the markets finished in the red as the CBOE Volatility Index (VIX) again crossed above the 20 threshold and oil surged. Stocks were impacted by continued economic concerns, renewed trouble in the financial sector, and a record spike in crude oil on Friday. Although it was a negative week for the markets, the Dow managed a 200+ point rally on Thursday for the first time since 4/18, after retailers posted better than expected same store sales.

The Dow plunged more than 400 points as the sharpest jump in the unemployment rate in more than 20 years and rocketing oil prices sparked concerns about stagflation. Oil jumped more than $11 a barrel to close at a record $138.54.

Stocks rallied, with the Dow ending just shy of its session high, after an unexpected drop in jobless claims and solid sales reports from some retailers including Wal-Mart. A credit-rating downgrade on bond insurers spurred a quick dip but stocks quickly bounced back. Oil closed near $128 a barrel.

How long can a slow economy mean good times at Wal-Mart? The company is betting that the traffic boost from rebate checks will carry into June and that grocery sales will still be strong in the month ahead. That’s why they’re forecasting sales up between 2-4%.

Costco Wholesale, the largest U.S. warehouse club, reported a better-than-expected 9 percent rise in sales at stores open at least a year in May, helped by higher gasoline prices, food inflation and strength in foreign currency.

Costco Wholesale, the biggest U.S. warehouse club operator, said Thursday its quarterly profit jumped 32 percent, beating expectations, as shoppers flocked to its stores for discounts on food and gasoline.